In 2023, as electric vehicle (EV) sales surged, the automotive industry ramped up its federal lobbying efforts, spending a record $85.8 million. This marked a continuous increase in lobbying expenditures since 2020. By the first quarter of 2024, the industry had already spent $23.1 million on lobbying, which is similar to the $23.8 million spent during the same period in 2023. This increase in spending underscores the industry’s desire to influence policies that impact electric vehicle development and emissions regulations.
Impact of the Inflation Reduction Act
The surge in lobbying spending follows the passage of President Biden’s Inflation Reduction Act (IRA) in 2022, which aims to cut U.S. greenhouse gas emissions by 40% by 2030. The $369 billion law includes significant investments in energy security and climate change programs, along with tax credits for consumers purchasing electric vehicles. As the Biden administration pushes for increased EV production, the automotive industry has balanced investing in EV technology with efforts to influence federal policies regarding emissions and vehicle electrification.
A key focus of the automotive industry’s lobbying has been the new emissions standards set by the Environmental Protection Agency (EPA). These standards, which apply to passenger cars and light-duty trucks from 2027 through 2032, allow automakers some flexibility in meeting overall emissions reduction targets. Companies like General Motors, Toyota, and various trade associations have lobbied the EPA on these issues. General Motors, in particular, has spent millions to influence policies related to electric vehicles and climate policy.
Leading Lobbyists: General Motors and Toyota
General Motors has been the top spender in the automotive sector, spending $14.17 million on lobbying in 2023. The company’s lobbying efforts have focused on tax incentives for electric vehicles and policies regarding charging stations. In 2024, General Motors continued its lobbying efforts with $4.8 million spent in the first quarter. Toyota, the second-largest U.S. automaker, spent $6.3 million in 2023, with lobbying focused on supply chain challenges and greenhouse gas emissions standards. Despite skepticism about EV adoption, Toyota has made substantial investments in its own battery manufacturing infrastructure.
The rise of electric vehicles has been matched by substantial investments in the EV supply chain. The IRA’s incentives have spurred over $70 billion in private-sector investments in the EV industry. Automakers like General Motors and Toyota have committed to building battery production facilities, including joint ventures and new factories. With electric vehicles becoming the fastest-growing segment of the U.S. automotive market, making up 7.6% of all sales in 2023, automakers are focused on maintaining competitiveness in this rapidly evolving sector.
